Amazon has confirmed that it will be shutting down eight Amazon Go stores in the US. Two are located in New York City, two in Seattle, and four in San Francisco. The company has stated that the move is part of its ongoing effort to optimize its portfolio of stores. Amazon spokesperson Jessica Martin said that the company remains committed to the Amazon Go format and will continue to operate more than 20 such stores across the country.
Amazon’s Go stores have been designed as high-tech shops equipped with cameras and sensors that can detect when products are taken and returned to shelves. The stores allow customers to pick items they want and add them to their virtual cart for online payment, without having to pass by a cashier. However, the e-retail giant has been struggling to establish itself in the physical retail space and has been changing its strategies frequently.
The latest move comes at a time when Amazon is making a series of cost-cutting decisions amidst slowing sales growth. In January, the company expanded its planned job cuts from 10,000 to 18,000 roles, with the layoffs mostly affecting personnel from its retail and recruiting divisions. Furthermore, Amazon has paused construction on its second headquarters in Arlington, Virginia, as it reassesses its office needs in light of the growing trend of remote work.
Amazon has not revealed the exact reasons for the closure of these stores. However, the company is reportedly still committed to developing its brick-and-mortar grocery store business. In February, CEO Andy Jassy announced that the company plans to go big on its physical grocery stores and hopes to have a new format ready for launch in 2023.